ComfortDelGro - OCBC Investment 2024-05-15: Broad-based Growth

• ComfortDelGro (SGX:C52)'s 1Q24 revenue and operating profit increased 10.8% and 10% to S$1b and S$56m, respectively, with operating profit margin remaining fairly stable at ~5.5%. PATMI grew 23.8% y-o-y to S$40.6m.

A fourth consecutive quarter of y-o-y improvement

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Revenue growth driven by the Public Transport, Taxi & Private Hire, and Other Private Transport segments

Public Transport segment

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Taxi & Private Hire segment

• Revenue and operating profit from the Taxi & Private Hire segment were up 8.2% and 38.6% y-o-y to S$148.3m and S$23.7m, respectively, as ComfortDelGro enjoyed higher commission rates and fares from its Singapore taxi business, and also benefited from lower rental discounts in Singapore and China.
• However, operating profit margin was softer than expected at 15.7% (4Q23: 23.4%), with management citing seasonality (such as Lunar New Year especially for its China taxi business).
• Booking volumes in Singapore were also lower at ~7m versus ~8m in 1Q23 due to heightened competition, despite our expectations of demand increase on the back of Taylor Swift’s The Eras Tour in Mar 2024.

Other Private Transport segment

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Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-05-15 SGinvestors.io

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